AYYAN to vote on selling Al-Salam, Al Ahsa stakes for new shares in Dallah on March 12

Logo of AYYAN Investment Co.

AYYAN Investment Co.’s ordinary general meeting (OGM) will vote on selling its holdings in Al-Ahsa Medical Services Co. and Al-Salam Medical Services Co., to be held on March 12.

In a single transaction, AYYAN would sell its 97.4% stake in Al-Ahsa (which owns Al-Ahsa Hospital in Al-Ahsa) and 100% of the capital of Al-Salam (which owns Al-Salam Hospital in Al-Khobar) to Dallah Healthcare Co., according to a Tadawul filing today, Feb. 19.

The stake sale will be in exchange for a non-cash consideration, represented by Dallah Healthcare issuing new shares to AYYAN, which will account for 3.83% of the former’s post-increase capital.

Additional cash consideration could be due to either AYYAN or Dallah Healthcare, depending on the provisions of the previously-signed binding acquisition and subscription agreement.

In August 2024, Dallah Healthcare and AYYAN signed a binding acquisition and subscription agreement, under which the former would purchase the latter’s 97.4% and 100% ownership in Al-Ahsa and Al-Salam companies, respectively, data compiled by Argaam showed.

In early February, the Capital Market Authority (CMA) approved Dallah Healthcare’s capital top-up request from SAR 976.81 million to SAR 1.02 billion, through the issuance of 3.89 million ordinary shares to acquire a 97.41% stake in Al-Ahsa and 100% of Al-Salam, both owned by AYYAN.

On Feb. 6, Dallah Healthcare announced the two-month extension of the binding acquisition and subscription agreement with AYYAN, pending the completion of some prerequisites including obtaining the no-objection of both companies’ shareholders.